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According to the announcement, China Longyuan Power Group Corporation Limited (Longyuan Power) proposes, under its General Mandate to Issue Shares, to offer up to 1,008,386,832 new A Shares (not exceeding 20% of its total A Shares in issue) on the Shenzhen Stock Exchange. The proposed issuance targets no more than 35 specific investors and is expected to raise no more than RMB5 billion in total. The final issue price will be determined through bidding, with a floor of no less than 80% of the average trading price of Longyuan Power’s A Shares in the 20 trading days preceding the pricing benchmark date, and no lower than the most recent audited net asset value per share. If any ex-dividend or ex-rights occurs between the benchmark date and the actual issuance date, the issue price will be adjusted accordingly.
The company indicates that the number of new A Shares to be issued must also comply with a lock-up period of six months. The final allocation among subscribers will be based on quotations submitted by issuance targets in consultation with the sponsor (lead underwriter). Upon completion, all subscribers will pay in RMB cash at the same price. The raised funds are earmarked for wind power project construction, including Hainan Dongfang CZ8 Site 500 MW Offshore Wind Power Project and the “Ningxiang DC” supporting new energy base Shapotou 1 million kW Wind Power Project, among others.
The announcement notes that the proposal and related matters require approvals from relevant state-owned asset supervisors, the Shareholders’ Meeting of Longyuan Power, a review by the Shenzhen Stock Exchange, and registration approval by the China Securities Regulatory Commission (CSRC). Subject to final regulatory clearances, changes to the issuance plan, the exact subscription price, and the total number of shares will be determined by the company’s Board or its authorized persons in accordance with applicable regulations.
Longyuan Power, a subsidiary of China Energy Investment Group Co., Ltd., emphasizes that there can be no assurance as to whether or when the transaction will proceed. All shareholders and potential investors are advised to exercise caution when dealing in the company’s securities. A Shareholders’ Meeting circular with fuller details on the proposed issuance, along with notice of the meeting, will be published in due course.